The State AIC issued “Interim Measures for the Administration of the List of Enterprises with Serious Breaches of Law and Discredited Enterprises” and regulate clearly the detailed situation which the breaching the laws, the competent authority, the bad result and so on. It will take effect on 1st April 2016. Dongjin is listing the points of this regulation as follows.
- The detailed situation which breaching the laws
Article 5 the following actions will be deemed as the “SERIOUS BREACHES OF LAW and become DISCREDITED ENTERPRISE”
1. Having been put on the abnormal operation list for three years and not fulfilling the relevant obligations;
2. Submit the fake documents, or other fraudulent means to conceal important facts for any change or deregistration formalities and such registration having been revoked;
3. Organize or plan the pyramid selling, or have been made the administration penalties for three or more times within two years due to provide convenience for the pyramid selling;
4. Having been made the administration penalties for three or more times within two years due to the illegal activities during the direct selling;
5. Having been made the administration penalties for three or more times within two years due to the illicit competition;
6. Having been made the administration penalties for three or more times within two years due to the illegal behavior that the provided goods or services do not meet the safety requirements of the personal and property protection, which was seriously infringe the consumers’ rights and interests and cause the personal injury and so on;
7. Having been made the administration penalties for three or more times within two years due to the publishing the fake advertisement or cause the personal injury or other serious social adverse impact because of publishing the commodities or services which related to the life and health of the consumers;
8. Having been made the administration penalties for two or more times within five years due to trademark infringement activities;
9. Having been decided to terminate to accept it as the trademark agent;
10. Any other activities which seriously violate the laws and administrative rules and regulations of the Administration for Industry and commerce;
- Bad results
Article 13 the Administration Bureau of Industry and Commerce will make the follow administration on the companies who were put on the dishonest list.
- Pay special attention on it;
- If due to the circumstance as mentioned in Article 5.1 and been put on the dishonest list, its legal representative and person-in-charge cannot take the positions as the legal representative and person-in-charge in other companies within three years;
- Will not approval its application for “enterprise of credit”;
- Will not be given the relevant honors and awards;
If due to the circumstance as mentioned in Article 5.1 and been put on the dishonest list, if its legal representative and person-in-charge took such positions as the legal representative or person-in-charge in other company, such company shall change the person. (Quoted from Article 15)
- We may learn from this regulation what is the main issues the authorities are paying attention on.
- The company should have better legal consciousness to control the operation risks.
If you have any questions, please send the email to me.
Ms. Jojo Hu
TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021